Ethereum price has taken a hit recently, extending its downside correction below the $3,800 support level. As a result, ETH is now approaching the $3,720 support and may be gearing up for a potential fresh increase. The decline in price came after Ethereum failed to hold above the $3,880 zone and is currently trading below both $3,880 and the 100-hourly Simple Moving Average. This indicates a bearish trend in the short term.
There is a key bearish trend line forming with resistance at $3,800 on the hourly chart of ETH/USD. If the price fails to break above this resistance level, it could continue to move down towards the $3,720 support. The bears are currently targeting this support level as the next major checkpoint. However, if Ethereum manages to surpass the $3,800 resistance, it might face further resistance near $3,840 and $3,900 levels.
Potential Upside Movement
In the event of a fresh increase, Ethereum could potentially break above the $3,840 resistance and aim for higher levels like $3,940 and even $4,000. A successful move above $4,000 could signal a bullish trend and push the price towards $4,080. Nonetheless, the price must first clear the initial resistance at $3,800 to pave the way for any potential upside movement. The 100-hourly Simple Moving Average currently sits above $3,800, acting as a hurdle for the digital asset.
The MACD for ETH/USD is showing signs of gaining momentum in the bearish zone, indicating a potential continuation of the downward trend. The Relative Strength Index (RSI) for ETH/USD has also dipped below the 50 zone, further confirming the bearish sentiment in the market. These technical indicators suggest that Ethereum price may face further downward pressure in the near term.
While Ethereum price is currently facing a downside correction and struggling to break key resistance levels, there is potential for a fresh increase if certain resistance levels are surpassed. Traders and investors should closely monitor the market sentiment and technical indicators to gauge the future direction of Ethereum price accurately.
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